The Winning Factor: Apple

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We all are familiar with the exceptional products by Apple Inc. The apple phone became the most important mobile phone brand in the world. All of these started with one man that gathered a very talented team of scientists and engineers Steve Jobs remains undisputedly the father of modern tech speaking.

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For a better understanding I have explored some marketing theories such as : advertisement , promotion, pricing and sales, which are key factors for their worldwide success.


As it is known, Apples Inc does not spend large amount of money with advertisement. If you remember, all started with Mr. Jobs Apples co-founder the idea of connecting with an audience in the launching ceremonies by telling them in the simplest way about the product. Storytelling became an important pattern among the tech companies, it seems like that people no longer want the buy the products only, but the philosophy and ideology behind it as well.

After Mr. Jobs death, this concept gained bigger proportions. Storytelling was done before by other CEOs but Steve Jobs changed the way it was done by selling himself to the crowd on presenting the product in the way that people could feel connected with the product being presented.

It is important that customers talk about your products and services in a positive way, showing the importance of having them in their lives. And, your customers will become one of your forms of advertising, encouraging new people to buy your products and services, as they become fans of the brand and will spread free of charge the return that your products and services bring to them.

Elon Musk the tesla founder is the perfect example that Steve Jobs legacy will be exist for a long period. Just as Mr. Jobs, Elon Musk brings to the market a product that could solve one of the biggest challenges of the auto industry the emission of hazardous gases to the atmosphere, when he introduced the tesla model S.

Last year a movie about Mr. Jobs launched, it made a tremendous success. The movie premiered at the 2015 Telluride Film Festival on September 5. Was nominated to the 88th Academy Awards, for the best actors and best supporting Actress. The reason this movie was a success it is because he continues to be an important figure not only for the tech world but also for other industries. Millennials are obsessed with the fact that companies should care about their customers just as Mr. Jobs did and well.

Promotion and Price

Promotions is a manner that you induce activities, which interact the product, brand or even services to the customers. Attract different people to buy your products.

In the age when business success depends on staying close to costumers, my experience without exception has been that successful companies spend time in conversation, in close touch, with what is going on in the market-place. Kenichi Ohmae, managing director of Mckinsey & Company in Japan.

Today there are several types and techniques to promote any product, for example Internet, is often used for images that call fast to the attention of the internet user and many times is target to the younger that usually are the ones that use more Internet. Moreover, on the television and radio that are used in order to attract more customers or are all thing that a company have to do to acquire customers and maintain a relationship with them. It helps any organization to establish their names recognition, distinguish themselves from competitors, communicate its value proposition, and most importantly sell more products. Apple uses mainly the internet as way of supporting customers so that they can attract more and more customers.

Apple upgrade program is a very efficient promotion scheme it allows the customers to upgrade from older version to the newest versions. In 2014, this policy was first made public when they sent promotional emails to some customers encouraging them to upgrade from the older versions such as iPhone 4, 4s and 5 to 5s and 5c. Some iPhone users are obsessed with the idea of upgrading, this program allows them to pay minimum monthly fees of less than $37 for twelve month and be illegible to secure an upgrade after the newest version is out.

It is necessary that the entrepreneur be able to determine the real cost of the company products. This allows the elaboration of sales coherent with the market and the competition. However, for a large number of companies, the cost is not the determining factor in price formation.

Apples pricing system remains meanly linked with Steve Jobs quo principle, Jobs vision was always to create a premier product and charge a premium price. They ensured a high-quality user experience even for their cheapest products, which are usually mid-range priced. The products hardware and users interface are designed to provide a big value for the high prices, which maintains the profits high.

We never had an objective to sell a low-cost phone. Our primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost. Apple CEO Tim Cook told Bloomberg Businessweek in an interview last year.

In times of crisis, people define priorities. Africa, Asian and Latin America are a fundamental market for Apples phone. Due to the current low oil prices that made OPEC countries cut on their national budgets and Chinese currency devaluation, we saw a direct impact of these on mobile industry and other economic sectors. Therefore, people are starting to think of cheaper alternatives. With an increasing competition from Android and low-cost smartphones, as well as saturation in the developed markets, analysts feel that the company could risk becoming a highly overpriced brand.


I remember vividly in 2007 Steve Jobs speaking on the launching ceremony of the iPhone, back then the world seemed to be very excited about it. As many report, say in terms of sales 2007 was an experimental year for Apple Inc. Economically we know that the prime objective of a company is profitability but it seemed like not for Apple by selling the phone in a very small quantity they created a high demand. Which worked perfectly for them just until recently when the oil crisis striked many industries and the mobile industry was also deeply affected.

According to a report by business insider, the Apple Inc. would be facing during this current year a loss on its iPhone sales and for the first time their revenue will fall from the year ago quarter since 2003.

In my personal view, the current market turmoil will not affect the iPhone brand in the long - run, as soon as the oil market stabilizes itself, the sales of gadgets such as this will gain back its momentum and the iPhone might keep its leading position in terms of sales.

Innovation will definitely play a big role for Apple Inc. As many companies are producing smartphones with high qualities and low prices, creating a direct threat to the iPhone. We cannot predict the future but the highly expected iPhone 7 and 7 plus, will definitely dictate a lot of what was stated earlier on this paper.

They can definitely secure the American and European markets but other parts of the world where they do not have legal representation or programs such as; Apple upgrade program, the customers will certainly gravitate towards other more affordable brands and this tendency might expand if not observed very closely.


By Samantha Nielson An investor's essential guide to Apple

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